Loan Applications for Home Purchases Soar

Loan Applications for Home Purchases Soar

Mortgage applications for purchases rose to their highest levels since June last week, as mortgage rates hovered at record lows, the Mortgage Bankers Association reports.

Loan requests for home purchases, viewed as a leading indicator of future home sales, increased 2.4 percent for the week ending Oct. 5.

However, the overall index — which includes applications for refinancings and home purchases — was down slightly for the week, falling 1.2 percent last week, MBA reported. Applications for refinancings make up the biggest bulk of the index.

Taken alone, applications for refinancings dropped 2 percent last week, but still remain at a three-year high in volume, says Mike Fratantoni, MBA’s vice president of research and economics.